The Governors’ Wind & Solar Energy Coalition on Wednesday urged the US Federal Energy Regulatory Commission to abandon its plan to revamp the capacity market in PJM Interconnection to address the effects of state-subsidized energy resources, saying FERC is overstepping its authority.

“If the commission preempts or restricts the states’ ability to regulate environmental effects from energy power production, it would constitute a dangerous shift in the balance between state and federal authority,” said the coalition, which includes governors from 19 states.

FERC ORDER

At issue is a June 29 FERC order rejecting two proposals that PJM filed to redesign its capacity market to address the impacts of state policies that subsidize renewable and nuclear power. Instead, FERC offered its own solution and launched a proceeding (EL18-178) to flesh out the details of that plan.

FERC’s proposal would require PJM to modify its minimum offer price rule so it applies to new and existing resources that receive out-of-market payments, regardless of resource type….